The US President has announced plans to put in place tariffs on nearly all imports from China,

That would raise the total affected by US penalties to $517 billion (£390billion) - covering nearly all goods China sells the United States.

Announcing the tariffs, Trump said in a statement: “If China takes retaliatory action against our farmers or other industries, we will immediately pursue phase three, which is tariffs on approximately $267bn of additional imports.”

Blaming the escalation on “unfair policies and practices”, he added: “For months, we have urged China to change these unfair practices, and give fair and reciprocal treatment to American companies.

“We have been very clear about the type of changes that need to be made, and we have given China every opportunity to treat us more fairly. But, so far, China has been unwilling to change its practices.”

Goods such as luggage, housewares and foods will be included, but smart watches and highchairs have been excluded

The Chinese commerce ministry says it has no choice but to respond.

It's not clear what form retaliation will take, but the ministry previously threatened tariffs on $60 billion (£45.6billion) worth of US goods. This would mean that between 85 per cent and 95 per cent of American imports coming into China would be subject to a tariff.

How did the US-China trade war escalate?

When Donald Trump campaigned for election, he vowed to make trade fairer for the US.

Yet his endeavours have seen him fighting with some of America’s oldest trading partners.

The one that’s generating most interest is the conflict with China, as the world’s two largest economies battle for global influence.

By imposing tariffs on Chinese products, manufacturers could be forced to look elsewhere, which could cripple China’s economy.

The dispute started in January, when the US slapped tariffs on imported washing machines and solar panels.

So far this year, the US has imposed three rounds of tariffs on Chinese goods – amounting to $250bn (£190bn) worth of goods.

The first two rounds placed 25 per cent tariffs on $50bn (£38bn) imports from China – and Beijing retaliated by announcing it would place its own 25 per cent tariffs on 659 US imports also worth $50bn.

Now Trump has hit back again, with his latest round of taxes taking effect on September 24.

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This is the third set of tariffs Trump’s imposed this year.

In July, the White House increased charges on $34bn (£25.8) worth of Chinese products.

And last month, the trade war was further fuelled when the US brought in a 25 per cent tax on a second wave of goods worth $16bn (£12bn).

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